The following assets do not pass through probate or estate administration. Instead, the proceeds go directly to the person named as beneficiary or joint owner of that account. Utilizing these ownership structures can streamline the distribution of your estate and provide financial benefits to your heirs. The following forms of ownership avoid probate: 1. Real Estate held as Joint Tenants with the Right of Survivorship. 2. Tenants-by-the-Entirety (spouses). 3. Transfer on Death Deed automatically transfers real estate upon death to the named beneficiary. 4. Life Insurance unless all beneficiaries are deceased. 5. An irrevocable or revocable intervivos trust (living trust) is created for holding ownership of your assets during your lifetime for the benefit of named beneficiaries and distributing and/or managing those assets after your death. The trust consists of the creator (also known as the grantor), trustee, and beneficiary. AVOID PROBATE WITH THESE FORMS OF OWNERSHIP
WITH THE ANNUAL FEDERAL GIFT TAX EXCLUSIONS, YOU CAN MAKE ANNUAL GIFTS WITHOUT TAX CONSEQUENCES.
6. Corporation stock jointly owned. 7. LLC member units jointly owned.
8. Lifetime Gifts: Sign a power of attorney authorizing your agent to make gifts during your lifetime if you are unable to do so. With the annual federal gift tax exclusions, you can make annual gifts without tax consequences. Giving away assets will appreciate in value, such as real estate, utilizes your exemptions and shifts the appreciation in value to the next generation. 9. Uniform Transfer to Minors Act (UTMA) custodial accounts transfer assets to minors without probate. 10. U.S. Savings Bonds with payable on death beneficiaries or joint ownership. 11. IRAs/401(k)s: Direct beneficiaries avoid probate. 12. Investment Accounts designated as Transfer on Death. 13. Bank Accounts Joint designated as Payable on Death, Transfer on Death, and in Trust.
14. Annuities. 15. Life Estate.
16. Automobiles: Some states allow family members to transfer vehicles up to a certain value directly through the DMV.
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